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a pu b lic ation of re tail cou ncil of c anada FALL 2015 $ 4. 95
The online MarkeTplace booM
and how reTailers are Taking advanTage page 30
Social Media & e-coMMerce 16 oMni-channel MerchandiSing 22 Wicker eMporiuM 33
S A LE
inside: RCC's 1st
annual e-CommeRCe
benChmaRk suRvey
RCC E-COM
MERCE
BENCHMARK
SURVEY
2015
read on Page 12
IN PARTNERS
HIP WITH
SPONSORED
BY
“We’ve never had more sales channels – or more questions.”
People who know Retail, know BDO.
The Retail & Consumer Business Practice at BDO
In a landscape of multiple sales channels, deep discounting, and changing
shopping habits, success depends on swift decisions and accurate predictions
of trends. BDO’s dedicated practice provides comprehensive value-added services
to retailers, restaurants, food & beverage, and consumer product organizations,
both domestically and overseas.
Assurance | Accounting | Tax | Advisory
www.bdo.ca/consumer-business
cAnAdiAn retAiLer
Fall 2015
driving online growth
Online marketplaces have recently become a boon for businesses looking
to complement their in-store offering. Many are also finding that it's a great
way to extend their reach and increase their brand presence. PAge 30
S A LE
features
iNDUstrY reseArch
12 canadian e-commerce growing
Forrester Research partnered with Retail Council
of Canada to develop the country’s very first
e-commerce benchmark survey. The report set out
to provide insights and information for retailers
as they grow their businesses here at home and
abroad. Find out what the survey reveals.
sociAL meDiA
power of social commerce
16 the
The retail environment is constantly changing.
And within this unpredictable landscape, what are
retailers to do to stay competitive? Leading retailers
are learning that by focusing more of their effort
on e-commerce, and coupling those efforts with the
smart use of social media, they are able to drive
sales and engagement with their customers.
merchANDisiNG
face-to-face
22 getting
When done well, merchandising can tell a
compelling story and move product. With
the emergence of multi-channel retailing,
merchandising has become more complicated
and complex and has presented merchants with a
daunting challenge: how to merchandise products
across multiple channels.
compete
the playing field
26 levelling
With a surplus of technology options on the
market, never before has the opportunity to
change business technologies been so easy—
especially for smaller players who want to get
online. Find out how the omni-channel world is
helping all retailers compete.
Growth Drivers
30 the online marketplace boom
Thousands of retailers across the country are
using online marketplaces to market and sell their
products and services. For some, marketplaces
may be an adjunct to their existing e-commerce and
bricks-and-mortar business, but for many small and
medium-sized retailers it’s the best way to vastly
expand their reach and grow their brand presence.
memBer proFiLe
in the online world
33 thriving
Founded more than 40 years ago, Wicker
Emporium built its success on the right product
assortment and excellent customer service. Today,
thanks to the potential of online and e-commerce,
the company continues to grow.
departments
4 pubLisher's desk
6 retAiL currents
8 retAiL: At issue
www.retailcouncil.org/cdnretailer
10 under the bAnner
38 Advertiser's index
on the cover
Illustration by Scope Media
FALL 2015 | canadian retailer
| 3
publisher’s desk
crafting an
omni-channel
retail experience
welcome to to our fall issue,
this year focussing on e-commerce, omni-channel retailing
and all things online retail!
I was recently reflecting back
to the late days of the 1990’s
.com frenzy—the predictions
by many media pundits and
wayward strategists that retailers would be “dis-intermediated” and shopping malls would not survive. It was the age of “land grabs”
and “first mover advantage”.
But through it all savvy merchants realized that the land underneath
their feet was among the most valuable brand assets they had—not a
burden to be managed out of existence, but rather a critical element
of sustainable competitive advantage to be developed into part of a
holistic customer shopping experience that would become known as
“omni-channel”
I don’t know how long “omni-channel” will remain the big buzzword
it is today. However, I am confident that retailers will maintain their
relentless focus on the customer—how he or she browses, shops and
transacts—regardless of media, method or mix, as critical elements to
success. Ultimately, crafting a retail experience that takes into consideration place, value, convenience, assortment, compelling and interesting products, and just great products at the right price at the right
time—is the winning formula that drives the art and science of retail.
These are truly interesting times in the Canadian e-commerce landscape. While the Canadian retail industry has been seen by some as
behind global online retail trends, innovative retailers are quickly narrowing the gap. Inside these pages you’ll hear their stories and hopefully pick up more than a few insights to make your retail enterprise—
either virtual, on main street or across the country—more successful.
We’re here to help with thought leadership and resources such as the
landmark RCC e-commerce benchmark survey (conducted in partnership with Forrester Research). And we’re also here to listen—and tell
your story so that the Canadian retail e-commerce industry thrives
and takes its place anchoring a strong and vibrant sector of the Canadian retail economy.
Sincerely,
Diane J. Brisebois
President and CEO
Retail Council of Canada
4|
canadian retailer | FALL 2015
FALL 2015 | voLUme 25 issUe 5
publisher
Diane J. Brisebois
a s s o c i at e p u b l i s h e r
michael LeBlanc
editor-in- chief
sean c. tarry
(416) 922-6678, ext. 286
[email protected]
art direction
scope media
www.scopemedia.ca
contributors
talbot Boggs, Jim Davidson, Andrew
hind, David mcpherson, robert price
d i r e c t o r o f p u b l i c at i o n s
Angela caroyannis
[email protected]
project manager
Kim Davies
[email protected]
sales manager
Bill mcDougall
[email protected]
editorial office
1881 Yonge Street, Suite 800
Toronto, Ontario M4S 3C4
Phone: (416) 922-6678 | Fax: (416) 922-8011
www.retailcouncil.org
a d v e r t i s i n g/ p r o d u c t i o n o f f i c e
Naylor (canada) inc.
300 – 1630 Ness Avenue,
Winnipeg, Manitoba R3J 3X1
Phone: (800) 665-2456 | Fax: (800) 709-5551
www.naylor.com
Canadian Retailer is published six times each
year by Retail Council of Canada. Members
receive complimentary copies of the magazine
with membership. The annual subscription rate
for non-members is $36.75 + tax.
Publication Mail Agreement No. 40063389
Return undeliverable Canadian addresses to:
Circulation Department, 1881 Yonge Street,
Suite 800, Toronto, Ontario M4S 3C4
[email protected].
We welcome your article suggestions and any
photographs pertaining to retailing in Canada.
Please note the opinions expressed in Canadian
Retailer do not necessarily reflect those of Retail
Council of Canada. For article reprints, contact
Naylor (Canada) Inc. at 1-800-665-2456.
Like RCC on Facebook
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Connect with RCC on LinkedIn
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user/RetailCouncil
DE
IRES NA
LABORATO DU CA
SA
DA SSUREU
RS
LIST
ED
’
AN LABOR
ADA ATORIE
S
R
BY
HOM
OLO
É PA
GU
RS
RITE C
UNDERW OF
retail currents
e-commerce innovation
retail growth
Toronto’s Sherway Gardens opens renovated north expansion
E-commerce innovation celebrated
On September 28 in Toronto,
The winners of the 2015
Canada Post held its annual
Canada Post E-commerce
Canadian E-commerce Inawards are:
novation Awards. The awards
Best LArge Omni-chAnneL
retAiLer
celebrate leaders in Canada’s
BEST Buy Canada
e-commerce industry, includBest smALL Omni-chAnneL
retAiLer
ing both established brands
PoPPy BarlEy
and emerging entrepreneurs,
Best LArge retAiLer
OnLine shOPPing
handing out $1 million in total
exPerience
prize package to the winners,
Frank & oak
Best smALL retAiLer
which includes shipping serviOnLine shOPPing
exPerience
ces, customized direct marketkayokoko
ing packages with data soluSwiMwEar inC.
tions, and marketing exposure.
mOst exciting stArt-uP
The Consumer Champion
ThalMiC laBS
Best custOmer
Award was won by the finalist
engAgement
that earned the most online
nErd BloCk
votes. The Canada Post EcOnsumer chAmPiOn
AwArd
commerce Innovator's Award
wEll.Ca
goes to an e-commerce comcAnAdA POst e-cOmmerce
innOvAtOr's AwArd
pany that has made a signifiShoPiFy
cant contribution to advancOmmunity imPAct AwArd
cing e-commerce in Canada,
ManiToBah MuklukS
as chosen by Canada Post.
The remaining winners were chosen by a panel of
industry experts: Diane J. Brisebois, President and
CEO of Retail Council of Canada; Sucharita MulpuruKodali, Principal Analyst on Forrester's eBusiness
Team , and principal author of RCC's 2015 E-commerce
Benchmark Survey; Duncan Payne, Hut2Hut Events
President and DX3 Co-founder; Rafe Petkovic, Google
Canada Head of Industry (Retail); and Stéphane Ricoul, founding President of eComMTL.
The expansion to Sherway’s north wing has
been three years in the
making. It’s part of a redevelopment plan that’s
projected to cost Cadillac
Fairview in the region of
$550-million. Phase one
of the redevelopment just
opened this past September welcoming iconic
retailers Sporting Life,
Harry Rosen, Ted Baker
London, Judith & Charles,
Uno de 50, Maison Birks
and DAVIDS.
As part of the redevelopment, Harry Rosen is now a
24,000-square-feet “flagship” store, and a completely
renovated Hudson’s Bay is now 225,000-square-feet. In
addition, a relocated Sporting Life is now 38,000-squarefeet, boasting many of the elements that have made
Sporting Life a frontrunner in experiential retailing.
“It is, I believe, a ‘stunner’,” says David Russell,
president of Sporting Life Inc.
The sporting goods retailer originally opened its
doors at Sherway Gardens in 1995. And almost to the
week 20 years later it’s opened its doors again to what
Russell calls, “a spectacular new Sporting Life.”
“The store is going to thrill a lot of shoppers,” Russell
says. “And, the new design, along with our associates,
who have always truly been the hallmark to the success
of Sporting Life, are sure to continue to make the Sporting Life experience a positive and exciting one.”
mobile search
Marketing on the go
Google has proclaimed 2015 to be the year that mobile search activity surpasses desktop search activity. In honour of this proclamation, and with the help of eMarketer, here are some interesting mobile-related stats that might
inform some of your next marketing decisions.
1525%
10
6|
20
of Internet
users own a
smartphone.
British Columbia and
Ontario have the highest smartphone usage
in Canada.
People who use mobile phones —that’s
roughly 87% of the
World’s population.
15
80%
30%
6.8 billion+
20
Increase
in mobile
data usage
forecasted
between 2010
and 2015
6pm -12pm
72%
of consumers
want mobilefriendly sites.
36%
67%
of consumers are
of North Amerwilling to buy a
ican Internet trafproduct or use a
fic is on mobile service on a mobileand tablet.
friendly site.
40% of mobile searches
happen between 6pm
and 12pm.
15%
of in-store activities involve
conducting smartphone
searches about a product or
for a price comparison.
94%
of smartphone owners
look for local information on their phone.
connected retail
The power of social media
Although social media only entered the lives of Canadians not long ago, it’s now pervasive and a part of the way
we live. It’s also a major piece of the retail marketing jigsaw puzzle. So, with that in mind, here are the latest social
media stats from the world’s most used social media sites.
11%
Frequency of visits on
the top global social
media platforms:
8%
25%
15%
56%
31%
25%
29 %
27%
28%
23 %
23 %
31%
More than once a day
22%
23 %
23 %
daily
22%
Weekly
15%
27%
16%
Less often
22%
29 %
14%
15%
19 %
43 %
24%
48%
48%
16%
21%
21%
Calendar
rcc events
omni channel for mystore
Tuesday, November 10, 2015
Webinar
retail advertising & marketing canada:
key trends in retail marketing for 2016
The St. James Cathedral Centre, Toronto, ON
enabling retail – webinar 5: career development
Webinar
leaders in retail breakfast with stefan sjostrand,
president, ikea canada
Wednesday, November 18, 2015
Hilton Toronto Airport Hotel & Suites, Vista Salon,
Mississauga, ON
leaders in retail breakfast with andree brien,
senior vice-president, costco wholesale canada
Wednesday, November 25, 2015
Toronto, ON
retail conditions: holiday edition with peter
woolford
Tuesday, December 15, 2015
Webinar
For more information concerning RCC events, visit www.retailcouncil.org/events.
| 7
retail: at issue
Together, we can make a
difference keeping your
employees safe.
HealtH and Safety
a top priority
ensuring a healthy and safe workplace involves
teamwork and learning
BROUGHT TO YOU BY RCC AND OCCUPATIONAL SAFETY GROUP
over the past 18 years, Occupational Safety Group Inc. (OSG) has
helped 10,000+ businesses through the delivery of over 50,000 safety
courses to over 400,000 employees. Through training, consulting
and evaluating, we understand health & safety needs and appreciate
the challenges that are faced in maintaining a positive health and
safety culture. OSG can help.
OSG has developed a program offering to RCC members. Our intent is to provide a thorough and economical solution to health and
safety for retailers across Canada.
at osg we:
• Customizecurriculumtothelegislationandregulationsofeach
Canadian province
• Provideeducationalcoursesfilledwithinterestingcontent,delivered by enthusiastic trainers who maximize class interaction
• Providethesametrainingexcellenceinfourdifferentdelivery
methods to suit your needs;
- Classroom: facilitator led training at one of our 20 classrooms
across Canada
- Train the Trainer: OSG will train your own in-house trainers, so
they can deliver OSG content to your employees whenever the
time is right
- Onsite: customizable training at your location with
an OSG facilitator
- Online: fully online, web-based training for those short
on time or need to start and stop training on demand
8|
in demand training courses delivered by
osg for retailers:
• JointHealthandSafetyCommittee
Certification Training
• WorkerAwarenessTraining
• SupervisorCompetencyTraining
• WHMIS2015
• WorkingatHeights*MOLApproved
• WorkplaceViolenceandHarassment
• LadderSafety
• LiftTruck
• ManualMaterialHandling
• ErgonomicsTraining
• Slips,TripsandFalls
• Plusmanymore
OSG wants to be on your health and safety
team, so visit our website at www.osg.ca or
call 1-800-815-9980 to speak to any one of
our Health & Safety advisors.
MeMber prograMS
benefitting Canadian
retailerS
retail council of canada partners with the retail industry
to help improve productivity across the nation
in addition to unsurpassed advocacy and first-rate con-
ferences and events, Retail Council of Canada (RCC)
offers its members programs and educational opportunities that improve the effectiveness of their businesses
and the value they receive from the association
education
• Retail First Level Manager (FLM) Certification Program – Helping store managers build sound business
skills, this program enables them to achieve their retail career goals and effectively lead their team.
• Retail Sales Associate (RSA) Certification Course –
This program provides the foundational skills necessary to become an expert in all aspects of retail sales.
• FoodWise - Food Safety Program – Providing grocery
staff with a better understanding of the factors that influence food safety, the purpose of this program is to
educate them concerning the science behind the procedures that keep food safe.
• PEAK Retail Training Program – PEAK provides training in the customer service, sales and human resources
aspects of the retail industry.
For more information concerning RCC's education
and training programs, contact Marcie Wenn, manager,
education, at 1-888-373-8245 ext. 320, or via email at
[email protected].
health & safety
Retailers continue to share the common goal of eliminating workplace injuries and illnesses. To achieve this
goal, RCC has taken a leadership role by promoting and
assisting our industry in the development of a strong
health and safety culture. Through strategic partnerships, RCC has developed several programs to ensure
its members have the necessary resources for a safe
working environment.
RCC’s Safety Group Program – The Safety Group Program is an innovative, voluntary initiative implemented
by the Workplace Safety and Insurance Board to reward
Ontario firms for instituting effective health and safety
measures in their businesses with up to a 6 per cent rebate in their annual premiums.
Occupational Safety Group – In collaboration with RCC,
OSG helps support the health and safety needs of retailers
across Canada. With thorough and economical solutions,
OSG provides training using four different delivery
methods including classroom, train the trainer, on-site
and online, as well as a variety of consulting services.
For health and safety inquiries or for more information
about the member health and safety programs available
through RCC please contact RCC’s manager of member
programs—Patrick Rodgerson, CRSP, at 1-888-373-8245
ext. 319, or via email at [email protected].
energy
RCC is committed to helping members reduce their
energy consumption. RCC offers expertise on facility
energy conservation incentive programs, product based
energy efficiency marketing, capacity building and counsel on energy pricing and regulatory pricing.
accessibility – enabling retail programs
RCC developed two programs to assist retailers in
achieving compliance with the Accessibility for Ontarians with Disabilities Act (AODA). The first, “How Can I
Help?” was created to provide training on the Customer
Service Standard requirements while the second program,
the “EnAbling Retail Webinar Series”, includes training
which focuses on the Employment Standard under the
AODA’s’ Integrated Disability Standard Regulation.
For more information concerning RCC's EnAbling Retail Webinar Series, visit www.retailcouncil.org.
| 9
under the banner
Fashion
FoRwaRd
brian hill’s creativity and business
prowess leads one of canada’s
most revered retail brands
BY SEAN C. TARRY
Brian Hill, founder and CEO of Aritzia, one of Canada's leading fashion retailers.
brian Hill is the founder and CEO of Aritzia, an innovative
design house and women’s fashion retailer. Brian opened
the first Aritzia in Vancouver in 1984 with his father, Jim,
and brother, Ross. Targeting stylish and affluent young
women who care about excellent design and exceptional
quality, they created a unique and elevated shopping environment—one centred on beautifully made clothes and
accessories, and world-class customer service.
Since then, Brian and his team have conceived and developed a portfolio of exclusive brands with an unparalleled
depth of design and quality at their competitive price point.
These lines—Wilfred, Wilfred Free, Le Fou, TNA, Babaton,
and Talula—have become well-recognized brands in their
own right, each with its own customer and point-of-view.
An accomplished retailer, merchant, and corporate strategist, Brian’s vision and expertise have driven notable growth.
With more than 70 locations in North America, including
Vancouver, Toronto, Montreal, Seattle, San Francisco, and
New York, as well as a thriving e-commerce site, Aritzia.com,
Aritzia continues to expand across the fashion landscape.
Brian has been awarded the Henry Singer Award for
Retail Excellence presented by the University of Alberta,
and Distinguished Retailer of the Year presented by Retail
Council of Canada, and was named Ernst & Young Entrepreneur Of The Year® for the Pacific Region.
He resides in Vancouver with his wife and two children.
They are actively involved in their community and generously support education, the Vancouver Art Gallery, the BC
Children’s Hospital, and Cause We Care—an organization
founded by his wife, Andrea Thomas Hill, that invests in supporting single mothers and children living in poverty.
For more of Brian Hill's insights, read full coverage of
RCC's 2015 Retail West Conference in the Holiday issue of
Canadian Retailer.
10 |
getting to know brian hill
candid questions from Canadian Retailer elicit
candid responses from Aritzia founder and
ceO, and the keynote speaker at rcc's 2015
retail west conference.
characteristics of a great leader?
A great leader has the ability to work at both
thirty thousand feet, developing the strategy,
and at thirty feet, joining their team to do the
heavy lifting required to succeed.
Favourite getaway locale?
Whistler.
education or experience?
it depends on the person. but education is never
a waste of anyone’s time.
Favourite mobile device?
My iphone.
do you shop in-store or online?
both.
Fiction or non-fiction?
non-fiction.
hands-on or hands-off management?
hands-on…and i get criticized for this on a
regular basis.
next big retail game-changer?
in the fashion business, things change season
over season and year over year. to survive and
thrive takes an understanding of the organic
nature of the consumer’s evolving aesthetic and
functional needs. What drives retail today is the
same as it has always been; giving the customer
great product and great service at a great price.
the most successful retailers succeed at delivering this value proposition time and time again.
3714 Runge Street, Franklin Park, IL 60131
1-(800) 250-9269
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Canadian RetaileRs
Closing the
e-CommeRCe gap
RCC E-COMM
ERCE
BENCHMAR
K SURVEY
2015
First of its kind e-commerce survey serves as benchmark
for Canadian companies going forward
IN PARTNE
RSHIP WITH
SPONSORED
BY
BY SEAN C. TARRY
in a first of its kind report, Forrester Re-
“Marketing is most definitely the number one focus for Canadian
search, in partnership with Retail Council
of Canada (RCC), recently conducted a retailers at the moment. They want to increase their exposure and
survey of Canadian retailers concerning broaden their brand appeal to bring in new customers. They’re
their e-commerce businesses and key in- also concentrating a considerable amount of effort on
itiatives for 2015. Incorporating insights omni-channel, site merchandising, and mobile.”
into metrics, investments, and marketing
— sUchAritA mULpUrU
Forrester Research
of Canadian retailers, the survey sought
to provide merchants in the country that are operating online with
performance indicators gathered from across the industry.
It’s a ground-breaking report that should prove the be instrumental over the year to come as retailers look to improve
their online offering, enhance their online brand and inrespondent geographies
crease sales in the online channels.
YT
The survey that supports the report was conducted in
NU
NT
March and April 2015. Forrester received 169 complete
NL
or partial retailer responses to the survey. The respondent
2%
profile of the survey comprised the following:
%
Small, store-based multichannel companies: Seventytwo per cent of respondents are store-led multichannel
retailers. Two-thirds are from companies generating
less than $100 million in revenue overall. Twenty per cent
represent companies generating $500 million or more.
11%
BC
Small, web businesses: Sixty-one per cent of survey respondents
said their web businesses generate less than $1million in sales.
Eleven per cent said their companies generate between $1 million and $5 million.
Both young and mature web businesses: Respondents are
evenly distributed when it comes to online tenure. Fifty-two per
cent have operated an online business for less than four years,
while 48 per cent have had an established e-commerce presence
for four years or more.
Retailers headquartered in Ontario: The majority—sixty-three
per cent—of respondents are headquartered in Ontario. Retailers based in Quebec represent 13 per cent of those surveyed,
and another 11 per cent of respondents represent companies
headquartered in British Columbia.
12 |
4
AB
4
%
SK
4%
MB
63%
ON
bAse: 54 canadian retailers
13%
QC
PE
2%
NS
NB
“This is huge for the industry,” says Michael
LeBlanc, senior vice-president marketing and
digital retail, RCC. “There currently isn’t another
report of its kind out there that allows retailers
to benchmark their e-commerce performance.
This is perhaps one of the most important pieces
here. Another is the fact that retailers can review
this data and recognize that online retailing in
Canada is growing. It’s growing because Canadian merchants are innovating and moving the
needle forward, and consumers are responding
with increased online traffic and a greater willingness to purchase goods and services online.”
marketing tops the priority list for canadian
online retailers
“What are your top three initiatives and priorities for your
online/digital business in 2015?” (Please select three)
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769122_CROSS.indd 1
It’s a sentiment that’s shared by Sucharita Mulpuru,
vice-president and principal analyst at Forrester Research. She believes that the key takeaway from the report is that “Canadian online retailers are getting stronger” and that, slowly but surely, Canadian merchants are
“gaining ground” on their international competitors.
“It’s true that Canadian retailers are still behind retailers operating in many other parts of the world. However,
the majority of Canadian online retailers surveyed reported growth in the double digits in 2014. Metrics such
as conversion rates and average order values have increased as well, while customer acquisition, fulfillment,
and customer service costs per order have decreased.”
This is big news for retailers operating across the country. As costs come down the ability for them to innovate,
and the opportunities for them to grow their online channels increase exponentially.
Another key takeaway from the report includes the fact
that marketing and customer acquisition seems to be the
biggest priority for Canadian retailers.
“Marketing is most definitely the number one focus for
Canadian retailers at the moment,” says Mulpuru. “They
want to increase their exposure and broaden their brand
appeal to bring in new customers. They’re also concentrating a considerable amount of effort on omni-channel,
site merchandising, and mobile.”
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Because customer acquisition is at the top of the list for
retailers in the country, according to the survey they’re
beginning to invest less in traditional marketing efforts
to achieve their goals.
“Most of the retailers that we spoke to are using triedand-true efforts to attract and engage with their audiences,” Mulpuru points out. “Compared to their U.S.
counterparts, Canadian retailers are spending modestly
on efforts like email and paid search.”
She doesn’t shy away from highlighting the fact that
Canadian e-commerce is still relatively small and underrepresented—only about 6 per cent of all retail in the
country comes from online sales—and that it’s smaller
than other markets around the world. But it’s a trend that
she sees changing as we move forward into 2016.
“E-commerce in Canada is growing quickly,” she says.
“And it’s likely to develop quite rapidly over the years
to come. As customer familiarity concerning shopping
online continues to increase, so too will the propensity for Canadian retailers to continue improving their
omni-channel offerings and the overall retail experience
for Canadian consumers.”
To download the full version of the 2015 E-commerce
Benchmark Survey, available in English and French, visit
www.retailcouncil.org/research/industry-research.
| 13
partner message brOntO sOFtWAre
Understanding the customer and complementing traditional marketing methods are critical to success.
taking the guesswork out
of omni-channel marketing
BY JIM DAVIDSON, Head of Research, Bronto Software
in case anyone doubts the gale force of the on-
line and mobile revolution in Canada, the stats
tell the tale. The percentage of Canadian households with Internet access jumped from 80 per
cent to 87 per cent between 2010 and 2013, placing Canada 16th globally in Internet penetration (the US is 14th). Today, 68 per cent of Canadians own a smartphone, up 24 per cent from
2014. And 43 per cent of Canadians own a tablet.
That means Canadians have more power
than ever to shop when and where they wish.
They’re using multiple devices to extend their
shopping experience and influence purchase
decisions. They can research, browse and buy
from anywhere within the reach of a cellular
or Internet connection. It’s easy for them to
fill a shopping cart and submit the order—and
just as easy for them to find a better deal a few
clicks or taps away.
Are your online visitors happily tapping away
or does your e-commerce experience leave them
wanting more? Do you know who your shoppers
are and how they want to interact with you?
Bronto asked over 1,000 Canadian shoppers
to tell us how they shop across desktop and
mobile devices. We discovered several interesting (and encouraging) trends:
14 |
• Canadians embrace online shopping. Sixty-six per cent of
Canadian shoppers will shop online at least once a month; 26
per cent shop online every week.
• Gen-Xers are a ripe audience. Today’s 30-somethings are the
most active weekly shoppers, with 18-29 year olds coming in a
close second. But even the 65-plus crowd is a worthy and growing audience.
• Men shop more often than you might have thought. Women
are labeled as avid shoppers, but 30 per cent of Canadian men
shop online weekly, compared to only 22 per cent of women.
To succeed in the omni-channel world, marketers must cater
to evolving consumer demands for convenience and connection.
This means rethinking once-dependable commerce marketing
strategies to engage today's shopper. To convert a casual shopper
into a loyal customer, you must know how your audience is experiencing your online presence across channels and devices and provide a user-friendly, seamless shopping and buying experience.
For more insights from consumers about how they are using—and
redefining—the online shopping landscape, visit http://bronto.
com to download the company’s Consumers Tell All: Canadian
Edition infographic.
social media
tHe power of
SoCial CoMMerCe
leveraging social media to drive sales, in-store and
online, becoming a boon for retailers of all sizes
BY DAviD mcphersoN
16 |
recent research, compiled by Consultant Ed
Strapagiel, shows the underlying 12-month retail
sales trend in Canada has been climbing steadily for the last two years (when gas stations are
left out). The three-month trend has softened
slightly, but is still running well above the average for recent years. On a year-to-date basis for
the first half of 2015, Canadian retail sales were
up five per cent, the best H1 result since 2010.
On the flip side, the Q2 2015 year-over-year
gain was 4.7 per cent, which is less than the
previous three quarters. “While things are still
good, the pace of retail sales gains could now
be cooling off,” Strapagiel says. “Up-cycles
don't last forever.”
With this ever-changing, unpredictable landscape, what are retailers to do to stay competitive? One way to squeeze out every last sale is
to put more focus on their e-commerce business
by using social media to help drive incremental
sales. Just ask Michelle Germain, owner/curator of Shopgirls.
then tagged depending on which body it would work with,” Germain explains. “Online shopping drives people into our shop,
but we also have a lot of customers from the U.S. and other countries. And for them you want to take the guesswork out of being
able to buy clothing online. As we narrow down their choices, we
try to make it as easy as possible for them to decide.”
Germain says this strategy drives sales because it establishes
an emotional connection with customers. “That is not always
easy to do when you do it virally,” she says. “We try to mirror
the experience in the bricks-and-mortar into the online shop; obviously as much as we can offer the one-on-one in-store, on the
online shop we have lots of options for people to ask questions
and make sure we get the right item for them. In the long run,
this strategy equals less returns and more happy customers.”
facebook’s news feed: a new tool to engage customers
Social media is now a critical part of the purchase process, influencing sales in-store and online. “Facebook now drives more traffic to websites than search engines, a healthy part of the purchase
funnel,” says Bianca Freedman, director, digital team at Edelman
Toronto. “It also reaches people traditional channels may not have
reached, offering unprecedented access to retail sites.”
According to Josh Bloom, head of
retail, Facebook Canada, there has
“We know that the best stories from advertisers are the ones
been an evolution of storytelling on
that are told in the same way people prefer to create and
the popular social media platform toconsume content. Our teams are working with businesses like
wards more visual content, especially
SportChek to understand and care about people’s behaviour, so with videos as an integrated part of
marketing strategies.
the advertising in the newsfeed is consistent with how people
“We know that the best stories from
create and consume content from their friends and family.”
advertisers are the ones that are told
— Josh BLoom, Facebook Canada in the same way people prefer to create and consume content,” Bloom exgrowing the social brand
plains. “Our teams are working with businesses like SportChek
Shopgirls, which opened in 2007, is a Toronto- to understand and care about people’s behaviour, so the adverbased gallery boutique that features all-Canadian tising in the newsfeed is consistent with how people create and
artists and designers. Germain has steadily grown consume content from their friends and family.”
her online store to complement and enhance her
Bloom cites some of SportChek’s recent campaigns as great
bricks-and-mortar presence. For her, having an examples of this strategy.
online presence is all about growing her brand.
With a goal of increasing in-store sales, SportChek turned to
“My focus when it comes to social is to have Facebook video ads to help complement their online flyer dura specific voice for the brand,” Germain says. ing their 2014 Black Friday/Cyber Monday and Boxing Day cam“We are very much about being approachable paigns. “The short-format video clips highlighted ‘door crasher
and embracing women of all shapes. Positive deals’ and leveraged Facebook’s interests targeting to ensure the
body image is what we are all about. We have a right product was hitting the right audience’s newsfeed,” Bloom
campaign—Shop Your Shape—that we continue says. “As a result, the SportChek Black Friday/Cyber Monday
to grow, which teaches women to work with the and Boxing Day campaigns drove a 57 per cent and 69 per cent
attributes that they love about their bodies as higher sell-through rate of items advertised.”
opposed to focusing on what they don’t like.”
Shopgirls uses its online shop to help cus- complementing traditional media
tomers determine their body shape by tagging
SportChek also saw a two-times return on ad spend after reevery single item in its virtual boutique that placing its traditional paper circular with Facebook digital adverwill work for a particular body shape. “On our tising, lifting in-store sales by more than 12 per cent nationally.
website we list six different body shapes and
“SportChek didn’t focus on likes, shares or clicks with this
anything that we upload to the online shop is digital campaign,” Bloom continues. “Instead, the company set
| 17
social media
key retail social media trends
According to edelman toronto, there are a number of
trends taking place within the industry today that the
best retailers have already taken note of.
1. targeting/the newsfeed flyer. Flyers have historically been the bread and butter of retail, and for many,
still are. but many today are becoming very open
to experimenting with what the social newsfeed
has to offer in driving sales on those hero items,
week over week. “some are even subbing parts of
the flyer for in-Facebook only offers,” says bianca
Freedman, director, digital team at edelman toronto.
“What this allows them to do is truly test the effectiveness of the channels in relation to marketing spend:
running paired regional tests to prove the value of
targeted Facebook ads. canadian retailers are seeing unbelievable results from this strategy. it’s really
interesting when you consider Facebook’s reach in
comparison to a flyer circulation: its mobile platform
alone now boasts 1.25 billion users. we strongly
encourage clients to be present in their customer’s
feeds and consider how it could change the future
of the weekly newspaper bundle or PdF flyer.”
2. Better integration. One of the hardest things for
retailers to get their arms around is integrating across
channels. “this will always be the ultimate marketing challenge,” says Freedman. “When you’re running
a seasonal campaign, a different team may lead the
digital aspects from the in-store experience, from site
merchandising online, etc. when we counsel our clients, it’s all about getting the most out of a campaign
spend: integrate the planning so that a customer is
confronted with your campaign message no matter
what channel they’re on in a personalized and relevant
way. A single customer may have dozens of chances to
interact with your brand on a given day—make it count.”
3. shopping where you socialize/socializing where you
shop. “We’re excited about the power that inspirational visual content has to convert sales and it’s important to not lose sight of this,” Freedman comments.
“People can register an image in just a few milliseconds, so it’s no surprise that an image has the power
to drive sales faster than your best-written copy in a
newsfeed.” instagram, pinterest, Facebook, twitter
(and others) are quickly rolling out “buy now” capabilities to help consumers click through on that item they
love, getting them through the purchase funnel faster.
“it’s incredibly powerful,” says Freedman. “Polyvore,
a high-end social commerce site out of the u.s. (recently acquired by yahoo!) is comprised of millions
of user-curated photo collage boards. the average
basket size on Polyvore is $383, showing us that
consumers truly want to shop on these channels.”
4. reviews, reviews, reviews. According to Freedman,
on the flip side, displaying user-generated, social
content near point of purchase [on the e-commerce
site] is now a table stake in e-commerce. “ratings
and reviews or user loaded photos triple conversion
rates on retail items, and when the rating is at fourplus stars, the numbers only go up from there,”
she explains. “You’ll notice retailers highlighting the
most popular or highest reviewed products—consumers very much want to know what other people
are buying and what the feedback is.”
18 |
tangible business goals of driving an increase of instore sales to prove that digital advertising could drive
customers into its brick-and-mortar stores. SportChek
plans to convert virtually all of its print circulars into
digital within the next year or two.”
Facebook—as a tool to drive e-commerce—is becoming less relevant for Shopgirls because, according to Germain, the actual reach is very limited for her business.
“It’s definitely something we continue to use,” she
says, “but Instagram is becoming our biggest driver.
Recently Instagram introduced a way for users to
link back to their online shop, which wasn’t an option
before. Now we can sell from Instagram. As we are
seeing those numbers of followers grow, that’s really
where we have the most control about the exposure
we are getting.”
“Instagram is becoming our biggest driver.
Recently Instagram introduced a way for users
to link back to their online shop, which wasn’t an
option before. Now we can sell from Instagram.
As we are seeing those numbers of followers
grow, that’s really where we have the most
control about the exposure we are getting.”
— micheLLe GermAiN, Shopgirls
time and focus
For Germain, as a small business owner, the biggest
hurdle is finding the time to devote to these new sales
channels. “It’s an ongoing challenge,” she says. “I wish
I could source it out and have a team working on it,
but that’s not possible. It’s something I need to spend
more time focusing on. It’s difficult to have someone
else say your brand voice for you, so I do most of the
social media myself.”
Edelman is encouraging retail brands to focus less
on being their audience’s friend and more on serving
up true value to their audiences—which often involves
driving to online or physical stores. “At the end of the
day, when you’re a retailer, people are coming to you to
buy things,” says Freedman. “Give ’em what they want,
in a relevant, contextual way.”
One of the questions Germain often gets asked by
fellow small business owners is ‘is it worth the cost to
have an online shop’?
“It’s important to look at it from different viewpoints,” she concludes. “I don’t ever expect my online
shop to be making more money than my bricks-andmortar or even competing to that same degree. But at
the same time, it’s more than a selling tool—it’s creating that emotional connection. That’s when you have
that relationship with customers. It transcends price,
location, and all of that—you create a community and
that’s what I’m trying to build.”
LEGAL NOTICE
If you accepted Visa or MasterCard credits cards as payment for goods or services after
-ARCHYOURRIGHTSCOULDBEAFFECTEDBYPROPOSEDNATIONALCLASSACTIONS
SETTLEMENTSWITH"ANKOF!MERICA#APITAL/NEAND#ITIGROUP
The Credit Card Actions
Class action lawsuits were commenced in British Columbia (the “BC Action”),
Alberta, Saskatchewan, Quebec and Ontario (collectively, the “Credit Card Actions”)
against Visa Canada Corporation (“Visa”), MasterCard International Incorporated
(“MasterCard”) and certain banks which issue credit cards (“Issuing Banks”) alleging
each of Visa and MasterCard conspired with their issuing banks and Acquirers in
setting the amount of interchange fees and imposing rules restricting merchants’ ability
to surcharge or refuse higher cost Visa and MasterCard credit cards (“Acquirer” is an
organization or person that entered into a contract with a merchant for the provision of
Visa Credit Card or MasterCard Credit Card services and charging Merchant Discount
Fees, including Interchange fees in Canada). On March 27, 2014, the BC Action was
certified as a class proceeding as against all defendants. This decision is currently
under appeal.
The Settlements
Although Bank of America Corporation and BofA Canada Bank, formerly MBNA
Canada Bank, affiliate of Bank of America Corporation (collectively, “BofA”), Capital
One Bank (Canada Branch) and Capital One Financial Corporation (collectively,
“Capital One”) and Citigroup Inc. (“Citigroup”) deny liability, they have each
reached national settlements with the plaintiffs (respectively, the “BofA Settlement”,
the “Capital One Settlement”, and the “Citigroup Settlement”, or collectively,
the “Settlements”), subject to approval of the courts in British Columbia, Alberta,
Saskatchewan, Quebec and Ontario (the “Courts”). BofA will pay CAD $7,750,000,
Capital One will pay $4,250,000 and Citigroup will pay $1,630,000 (collectively, the
“Settlement Amounts”) for the benefit of the Settlement Class Members (see below)
and provide cooperation that will assist with prosecuting the ongoing actions against
the non-settling defendants in exchange for a full release of claims against them and
their related entities.
If any of the Settlements are approved, the Class Lawyers will ask the Courts
to approve the deduction of certain amounts (collectively, the “Court Approved
Expenses”) from the Settlement Amounts, including costs incurred to distribute this
notice and process opt-out requests, comments and objections (see below), a counsel
fee of up to 25% of the recovered amounts, and disbursements.
As the Credit Card Actions will continue as against the other defendants, it is proposed
that the amounts remaining from the Settlement Amounts after deduction of all Court
Approved Expenses be held in trust for Settlement Class Members pending receipt
of further settlements or awards that may justify a distribution effort, or conclusion
of the Credit Card Actions. At such time, a distribution protocol will be created and
submitted to the Courts for approval, and further notice will be provided to Settlement
Class Members. If you would like to receive direct notice of any distribution efforts,
please register at www.creditcardsettlements.ca , or contact one of the Class Lawyers
listed below.
Certification/Authorization as Class Proceedings
for Settlement Purposes
Separate and apart from the certification of the BC Action against all defendants, in
order to implement the Settlements, the Courts have certified/authorized all of the
Credit Card Actions as class proceedings against BofA, Capital One and Citigroup for
settlement purposes only.
Who Are The Settlement Class Members?
You are a Settlement Class Member if you are a BofA Settlement Class Member, a
Capital One Settlement Class Member and/or a Citigroup Settlement Class Member.
You are also a BofA Settlement Class Member, a Capital One Settlement Class Member
and a Citigroup Settlement Class Member if you accept or accepted MasterCard credit
cards as payment for goods or services and incurred merchant discount fees, including
interchange fees, in Canada since March 23, 2001.
You are a BofA Settlement Class Member and a Citigroup Settlement Class Member if
you accept or accepted Visa credit cards as payment for goods or services and incurred
merchant discount fees, including interchange fees, in Canada since March 23, 2001.
All Settlement Class Members are affected by this notice, whether or not they have a
claim or potential claim against BofA, Capital One or Citigroup.
Settlement Approval Hearings
Hearings to consider approval of the Settlements, a counsel fee of up to 25% of
the recovered amounts, and disbursements payable from the Settlement Amounts
will be heard on November 9, 2015 at 10 a.m. (British Columbia Supreme Court,
Vancouver), November 10, 2015 at 10 a.m. (Court of Queen’s Bench of Alberta,
Edmonton), November 12 at 10 a.m. (Court of Queen’s Bench for Saskatchewan,
Regina), November 23, 2015 at 2:15 p.m. (Quebec Superior Court, Montreal) and
November 19 at 10 a.m. (Ontario Superior Court of Justice, Toronto). Anyone can
attend the hearings, but if you wish to speak to the Court, please advise the Opt-Out
Administrator (Epiq Systems)*.
If you wish to provide written comment on or objection to any of the Settlements, you
must do so by delivering same to the Opt-Out Administrator* by November 2, 2015.
Comments or objections will be provided to the Court for consideration in whether to
approve or reject the Settlements.
Participating in the Settlements or the Credit Card Actions
If you fall within the Settlement Class, including the Quebec Settlement Class (defined
below), and wish to participate in the Settlements and in the continuing Credit Card
Actions, you do not need to do anything at this time.
Opting Out of the Class Proceedings
The deadline to opt out of the Settlements or the class actions is November 4, 2015.
Consequences of Opting Out
By opting out, you are choosing:
1. not to take part in any of the Settlements,
2. not to participate in the ongoing prosecution of the Credit Card Class Actions
against the other defendants, AND
3. not to participate in any future settlements reached in the Credit Card
Class Actions.
Settlement Class Members who opt out (including Quebec Settlement Class Members)
will not be bound by any of the Settlements or the releases in the Settlements, but
will also not be entitled to share in any of the proceeds that may become available
to merchants as part of the Settlements. Settlement Class Members who opt out
(including Quebec Settlement Class Members) will also not be entitled to participate
in the continued prosecution of the Credit Card Class Actions or future settlements.
Consequences of Not Opting Out
BECAUSE OF DIFFERENCES IN THE ORDERS MADE BY THE COURTS, THE
CONSEQUENCES OF NOT OPTING OUT VARY DEPENDING ON WHETHER
YOU ARE A QUEBEC SETTLEMENT CLASS MEMBER (A SUBGROUP OF
THE SETTLEMENT CLASS) OR NOT.
You are a Quebec Settlement Class Member if you are a Quebec resident person
who accepted Visa and/or MasterCard credit cards as payment for goods or services
and incurred merchant discount fees, including interchange fees, in Canada, since
March 23, 2001. Any legal persons established for a private interest, partnership or
association which at any time between December 17, 2009 and December 17, 2010
had under its direction or control more than 50 persons bound to it by contract of
employment are not Quebec Settlement Class Members.
a) Quebec Settlement Class Members
Quebec Settlement Class Members who do not opt out will be bound by the
Settlements and the releases in them, and will be entitled to share in any of the
proceeds that may become available to merchants as part of the Settlements . They will
have an opportunity to opt out of the ongoing litigation against the other defendants
if and when such litigation is authorized as a class action against some or all of those
remaining defendants.
b) All Other Settlement Class Members
For all other Settlement Class Members, the election not to opt out also operates in
relation to future settlements and the ongoing litigation against the remaining defendants.
Settlement Class Members who are not Quebec Settlement Class Members who do not
opt out will be bound by the Settlements and the releases in them, and will be entitled
to share in any of the proceeds that may become available to merchants as part of the
Settlements and the ongoing litigation against the other defendants. They will not have
a further opportunity to opt out of the ongoing litigation against the other defendants
if and when such litigation is authorized as a class action against some or all of those
remaining defendants.
*
*
*
FOR MORE INFORMATION on the status of the approval hearings or on how to
opt out of the Credit Card Actions, comment or object to any of the Settlements, or
to view the Settlements and a list of other definitions that apply to this Notice, visit
www.creditcardsettlements.ca, which will be periodically updated with information
on the Settlements approval process and the Credit Card Actions.
*For communications with the Opt-Out Administrator, Epiq Systems call
(877) 283-6548, email [email protected], fax (844) 772-0145 or write
to Canadian Interchange, PO Box 2312, 349 W Georgia St., Vancouver, BC V6B 1Y0.
CLASS LAWYERS can be reached at [email protected] and are:
Branch MacMaster LLP at (604) 654-2999 (Luciana Brasil)
Camp Fiorante Mathews Mogerman at (604) 689-7555 (David Jones)
Consumer Law Group (for Quebec residents) at 1-888-909-7863 x2
(Jeff Orenstein)
This notice is approved by the Courts.
WWW#REDIT#ARD3ETTLEMENTSCAs
partner message cALL2recYcLe cAnAdA inc.
go green
Back to school with new technology and new attitudes
this back-to-school season, millions of students are
heading to the classroom carrying new mobile devices
containing batteries—all of which can be recycled. It is
the perfect time of year to educate young people about
proper recycling to protect the environment.
According to The 2015 Canadian Smartphone Market Catalyst study, 68 per cent of Canadians own a
smartphone. And a survey of more than 5,400 Canadian kids in grades 4 through 11 by MediaSmarts
shows that nearly 90 per cent of the oldest students
said they had their own cellphone, while a quarter of
nine- and 10-year-old students had their own device.
As technology advances and new equipment is released, our youth will replace their old gadgets with
new ones causing exponential growth in the number
of devices in the marketplace. If kids in the fourth
grade have personal mobile devices now, think about
how many they will have used and disposed of by the
time they are old enough to drive. How about the number they will use during the course of their lifetime?
what will happen to all those old devices?
Delphine Lagourgue, Regional Director, Call2Recycle, presents
the Sustainability Award to Leigh Pearson, Director of Facilities,
Environment and Procurement, Staples Canada.
It’s more important than ever to educate younger generations
about how to properly recycle rechargeable batteries found in
mobile devices. These products should not end up in landfills,
where reusable materials are wasted and could potentially harm
the environment.
Through Call2Recycle Canada, Inc., a battery product stewardship organization, retailers are able to offer a convenient, no-cost
option for recycling rechargeable batteries and cellphones. Students can also drop off their single-use batteries from products
such as alarm clocks, calculators, games and remote controls.
Staples Canada has launched its own Battery Recycling Program with Call2Recycle to help divert waste and toxins from
landfill. Read more about the program at www.call2recycle.ca/
staples. Since partnering with Call2Recycle® in 2007 to collect
and recycle batteries (rechargeable and alkaline), Staples has
grown its battery and cellphone recycling program to more than
300 stores. Collecting 129,887 kg, the retailer has surpassed its
goal of collecting 100,000 kg of batteries in 2014.
“We’ve made a lot of progress and achieved many of our sustainability goals,” said Pete Gibel, senior vice president of merchandising at Staples Canada and chair of the Staples Canada
Environmental Committee. “We continue to challenge our customers and ourselves to have a positive impact on the environment. We are very pleased to have been awarded the Leader in
Sustainability Award from Call2Recycle in 2014.”
20 |
Once deposited in the collection box, these
batteries and cellphones are transported to an
approved processing facility where the battery
components are broken down into raw material, from which they are reborn into useful new
products such as new batteries and stainless
steel products like golf clubs and silverware.
“Over the years, we’ve seen significant increases in the number of cellphones, tablets
and other mobile devices in the hands of our
youth,” said Joe Zenobio, executive director
of Call2Recycle Canada, Inc. “Teaching them
how to safely and properly recycle their old rechargeable batteries is great for the environment. We are thankful to our partners such
as Staples for working with us to achieve sustainability objectives.”
To find out more about Call2Recycle and the
programs that it can help retailers develop, visit
www.call2recycle.ca or call 1-888-224-9764
to find a battery recycling location near you.
Breakthrough technologies
Actionable Insights
Market Disruptors
We’ve got it all.
Decision Makers
Networking Opportunities
Retail Trends
Seriously.
Thought Leadership continues with
RCC Conferences in 2015/2016:
Retail Human Resources Conference
| April 5, 2016
Stefan Sjöstrand
President,
IKEA Canada | November 18, 2015
STORE 2016 | May 31 - June 1, 2016
Andrée Brien
Senior Vice President,
Costco Wholesale Canada | November 25, 2015
Learn more about our conferences at RetailCouncil.org/events
Looking to market your brand
to Canadian retailers?
WE’VE GOT OPTIONS FOR YOU!
Advertising in our bi-monthly magazine, Canadian Retailer, puts you directly in front
of Canada’s leading retail decision makers. With both print and digital editions, we have
options to get you noticed.
Display advertising – Your message will be included in both the print and digital editions.
Digital ad placement – Prominently display your message on the digital edition landscape.
Direct Mail – Include your marketing piece in the clear plastic bag in which the magazine ships.
These options can also be digitized!
Exclusive! Heavy Stock Insert – Ensures your message stands out by being printed on heavy stock
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Advertorial – Include content on a subject that is of interest to Canadian Retailer readers including text,
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As Canada’s only national, authoritative retail publication, Canadian Retailer puts advertisers in front of the industry that
is the driving force of the Canadian economy. For more information on how you can get involved, contact:
KIM DAVIES | Project Manager, Naylor Association Solutions
(204) 975-0423 | [email protected]
or view the media kit here: naylornetwork.com/webkits/PDFs/rets.pdf
RET-S0615
HP_FillerAd_CanadianRetailers_MKG.indd 1
13/10/15
4:06 pm
FALL 2015 | canadian
retailer
|
21
MERCHANDISING
GETTING
FACE-TO-FACE
Merchandising in an omni-channel world
BY ROBERT PRICE
AS so many retail gurus explain in confer-
“You want to figure out what [messages] work in each chan-
ences and speeches, merchandising is the
art and science of the retail industry. When nel and what doesn’t. You want to fail fast and keep pace
done well, merchandising can tell a com- with the customer. Marketing in an age of digital disruption
pelling story and move product.
means that you have to move fast or be left behind.”
With the emergence of multi-channel
— T.J. FLOOD, Canadian Tire
retailing, merchandising has become
more complicated and complex and has presented mer- tured product on display in the window, the same product
chants with a challenge: how to merchandise products needs to be front-and-centre in the online window.
across multiple channels. What, exactly, does successful Another key area where retailers need consistency
omni-channel merchandising look like?
is pricing. Retailers may use zone pricing in physical
stores, but online sales require a different strategy, says
Figuring it out
Applebaum. This might require either a caching system
Omni-channel retailing changes the role of the retail for capturing the geographical position of online cusmerchandiser. Even though retailers may see a multipli- tomers, or a single online zone price. Regardless, retailcity of channels, and even though they may struggle to ers need an overarching pricing strategy to account for
maximize each of those channels, customers see only the differences they’ll encounter in the two worlds.
one channel, one store. The challenge for retailers is to
create a unified experience for the customer. In response, Be consistent in messaging
says Vicky Applebaum, senior consultant at Retail Cat- Consistency is a key element to success in merchanegory Consutlants, many retailers are centralizing oper- dising across channels, says T.J. Flood, senior viceations so they can better manage data and understand president of marketing at Canadian Tire.
customer behaviours. This organization is forcing a “You can reach customers in a variety of venues.
change in the merchandiser’s role. Rather than simply That’s the challenge,” says Flood.
stage product, they must become data savvy—savvy at Touchpoints have proliferated, as retailers know, with
how customers shop each channel and savvy at manipu- customers browsing stores through websites and mobile
lating each channel in ways that persuade customers to devices. And while these digital channels have opened
make a purchase.
new routes to the customer, they have not obliterate trad “Merchandising is not just product displays, pricing, itional media—at least not yet. Television, flyers and the
promotions and plan-o-grams,” says Applebaum. “It is a merchandising opportunities available in-store, offer
bigger monster.”
valuable occasions to speak to customers. This breadth of
channels—and the noise associated with so many chanBe consistent in organization and pricing
nels—demands integrated messaging from retailers who
Applebaum advises retailers to strive for consistency in want distracted customers to remember their stores.
how they organize their stores. The plan-o-gram should be Flood says consistent integration across channels
consistent on every channel. This means that product in contributed to the success of Canadian Tire’s “Tested
aisle one of the physical store should be in the same “aisle” for Life in Canada” marketing campaign—a campaign
in the digital store. Similarly, if the physical store has a fea- that sought to communicate the store’s authenticity by
22 |
CANADIAN RETAILER | FALL 2015
Canadian Tire leads with best-in-class merchandising, both in-store and online.
promoting customer endorsements of key products.
Canadian Tire merchandised and marketed “tested”
products across a range of channels. The store created
“epic test” television spots that tested products in extreme (epic) situations—like testing to see if a new car
battery would work in a truck made out of ice. These
spots were modified for the web and the message was
reproduced in traditional channels. In-store product
displays—including inventory and digital screens—were
set up to present the “tested” products to customers. In
every channel, Canadian Tire attempted to maintain a
consistent look and feel—so customers would recognize
the products and to replicate the sense of authenticity
idea of serendipity.”
Test and tweak messages
While presenting product in an omni-channel environment requires consistent messages, Flood says
retailers need to remember that the media shapes the
messages. What works on television won’t necessarily
work on YouTube.
“Integration isn’t a cookie cutter approach, it depends
on the vehicle,” says Flood. What’s important is that the
underlying message is consistent.
The Canadian Tire flagship store in Edmonton South
Common mall, launched in June 2015, offers an example.
The enormous size of the flagship allows the retailer to
present product differently. More than one
“Mobile can’t be an afterthought. It needs to be front-andhundred digital screens integrate the product
centre. Canadian consumers are over the web and now they’re displays with the store’s digital and print meronto mobile. It’s a whole other set of considerations. You can’t chandising, and the square footage allows
to show the breadth of the
shrink your website to fit a mobile device, call it a day and say merchandisers
store’s product assortment. The store’s autothat mobile is done.”
— ANDREA STAIRS, eBay Canada motive section has a huge wall displaying the
store’s tire inventory. In the seasonal departthat drove the store to launch the epic campaign.
ment, customers can use 3D technology to create a model
Preserve serendipity
of what a new backyard might look like.
Multiple channels require multiple approaches to It’s all part of a different way of presenting products to
merchandising. When shopping in stores, most custom- customers. And while the shape of the message should
ers take their time and browse the aisles. Online, most suit the vehicle, retailers should generate offers that are
people browse narrowly, if at all. Most search for what germane to each individual.
they want and go directly to the product.
“You want to figure out what marketing messages
With more than 800 million listings in its market- work in each channel and which messages don't,” says
place, ebay Canada has had to work hard to create what Flood. Matching the right merchandising selection with
Andrea Stairs, managing director of Ebay Canada, calls the right customer in the right channel requires know“moments of discovery.” One of the solutions ebay en- ledge of the customer and speed. “You want to fail fast
gineered is a new, personalized feed to showcase prod- and keep pace with the customer,” says Flood. “Marketucts. Another collection is curated by ebay and presents ing in an age of digital disruption means that you have
customers with inventory they might not have con- to move fast or be left behind.”
sidered ebay for.
Ebay has seen success with tailoring merchandis “This is a first,” Stairs says. “This is us working on the ing messages to the media. Quickly, the retailer recwww.retailcouncil.org/cdnretailer
FALL 2015 | CANADIAN RETAILER
| 23
MERCHANDISING
Marriage between online and at-store needs to be seamless.
enjoy in Walmart stores with the added convenience
of online shopping with at-store pickup.” The system
allows shoppers to shop in a time and place that’s
convenient for them, schedule a pickup at the store,
pull into a parking spot outside a participating store
and watch as Walmart employees load the groceries
into the car.
“Marrying online shopping and at-store pickup
allows us to offer customers more time in their day
while saving them money,” says Rodrigue.
Walter Manning, owner of the Old Faithful Shop,
has witnessed a similar synergy in his online/instore experience.
Old Faithful Shop opened its first store in 2010,
and, prompted by what Manning says was “overwhelming demand,” the retailer opened a web store
six months later. Earlier this year, Manning opened
a Toronto location.
“We were in-store first, with no intention of going online,” he says, adding that he believes his store would
have gone out of business if it hadn’t opened an online
store for customers to browse and research product.
Today, the majority of the store’s sales happen in
the physical store, even though the web store inspires many of these sales. Customers see what they
like online and buy it in person.
“At this point there is no difference [between channels],” he says. “One hand shakes the other. The two
are inseparable.”
ognized the differences “At this point there is
in how users manipulate
Don’t forget Mobile
their digital devices and no difference [between
Stairs says retailers need to remember the unique
began merchandising dif- channels]. One hand
properties of mobile devices—and the opportunity for
ferently depending on what shakes the other. The
growth—when they merchandise through mobile.
device the customer uses.
“Mobile can’t be an afterthought. It needs to be
The ebay iPhone app, for two are inseparable.”
front-and-centre,” she says. Canada is heading to a
— WALTER MANNING point when mobile will dominate a retailer’s digital
example, was designed for
Old Faithful Shop channels. As Stairs puts it, “Canadian consumers
customers who know what
they’re buying. The app is
are over the web and now they’re onto mobile.”
transactional compared to the iPad app, a more Canadian retailers need to be prepared for the
entertaining app geared toward customers who shift to mobile. The shift will require different approaches to
want to browse and discover products.
merchandising and different technical considerations.
“It’s a whole other set of considerations,” says Stairs. “You can’t
Integrate channels
shrink your website to fit a mobile device, call it a day and say
Different channels, like digital stores and that mobile is done.”
physical stores, should integrate in ways that
leverage the other’s strengths. Case in point is Keep learning
Walmart Canada. The retail giant launched an “Everybody is still in a learning mode,” says Applebaum. Reonline shopping and at-store grocery pickup tailers can expect to see more change and more creative venservice in the Ottawa-area to serve busy, mo- tures as retailers test ideas across channels.
bile customers better.
While channels have multiplied, the core principles of mer “Our goal was clear,” says Simon Rodrigue, chandising remain constant: to present product in ways that insenior vice president, e-commerce, Walmart spire customers to purchase. To know what products customers
Canada. “Provide our customers with the prod- want to purchase. To put the right inventory in front of the right
uct assortment and low prices they already customer at the right moment.
24 |
Her decision to cut energy
costs by 75% with LED lighting
was a great idea.
And a great start.
Once you start seeing the benefits of our incentives
for LED lighting, you will want to look into making
other parts of your business like HVAC, refrigeration
and building automation systems more efficient
too. When you do, you’ll be joining thousands of
organizations across Ontario who are already enjoying
the savings that our programs deliver.
Take a look at their stories and our incentives at
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OM
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compete
LeveLLing the
pLaying fieLd
technoLogy heLping
retaiLers of aLL
sizes compete
By RoBeRt PRice
26 |
the store’s owner knows his product. Located in a sub-
to-implement solutions. Square and Lightspeed offer
urban borough outside of the city, the store has sold up- devices to facilitate in-store mobile sales, and online
scale men’s clothing for 25 years. They take risks with marketplaces like ebay and etsy offer other venues
the merchandise, too, offering experimental products where retailers can reach customers. And most of these
usually only found in the trendiest big city shops.
companies compete in multiple areas, offering soluBut the store’s reluctance to embrace technologies to tions for digital stores and in-store sales.
improve its business puzzles Robin Smith.
“It’s a conundrum,” says Smith, co-founder and gen- roadblock: integration
eral manager of sales and marketing at Virtual LogisMost technology vendors trumpet the simplicity of
tics, a retail technology provider.
their systems but not every retailer finds setting up
The store engages customers through social media, and running online stores easy. Rapid changes in the
but its back-end technology is ancient. They still do technology market generate new problems for retailtheir accounting through QuickBooks and they won’t ers to solve.
bring in inventory management technology to add efThe key roadblock for many independent retailers
ficiency to the operations.
is integration. Many of the underlying technology—
Without technology to automate inventory oper- the back-end systems, like their point-of-sale systems
ations, the store limits its growth potential, says Smith. and inventory systems—rely on antiquated technolo“It’s a complex world,” he says. “You need automation. gies and programs. Many retailers still use Microsoft
You can’t just hire people to pound a keyboard.”
Excel as their inventory management system. DisparThe men’s store isn’t an outlier. Many retailers ate systems don’t easily integrate into one another, and
haven’t updated their systems or moved online. It’s third party technologies or human labour is required
a headscratcher considering how much web and mo- to transfer data between the systems.
bile influence purchasing. Online sales accounted for
“If you don’t have good back-end systems, you can’t
$13-billion in 2014, with sales expected to grow by add new platforms easily,” says Smith. “Trying to feed
$3-billion in 2015 and another $3-billion in 2016.
data to all these platforms is difficult if not impossible.”
With a surplus of technology
options on the market, never “if your business is predicated on buying product, marking it up
before has the opportunity to
and selling in a store, what’s the difference today with the store
change the business technologies been so easy—especially for next door? Until you define that, technology is irrelevant.”
smaller players who want to get
— roBiN smith, Virtual Logistics
online, expand their businesses
and compete with larger players. Yet many aren’t.
getting it done
In spite of the challenges facing retailers, many inthen and now
dependent merchants have found their way. One suc“Retail has seen an explosion of technology,” says cess is Zane Aburaneh, owner of Zane, an accessories
Kevin Butler, Director of Marketing at OrderDynam- store with an online sales channel and stores in Vanics. One only needs to look at web stores from fifteen couver and Toronto. The physical stores generate a laryears ago to see the change. Back then, only adventur- ger portion of the store’s sales, but at least a quarter
ous retailers dove into online selling. Those that did of these sales come via the online store, as customers
often wrote code themselves.
browse the e-store and visit the physical store to make
“Not long ago e-commerce sites were the under-the- a purchase.
radar pet projects of the tech department,” says Butler.
Aburaneh uses two main technology providers, one
Websites were, at best, ugly (you might call them for the online sales, and one for in-store POS. The two
“handcrafted”) business card sites advertising the technology providers don’t integrate nicely—“The upstore’s location and newspaper flyers. Over time, static dating is all inconsistent,” he says—and so the store staff
webpages transformed into stores as reticent consum- juggles data between the systems rather than spending
ers became more willing to make purchases online.
additional investments on a third party integrator.
Now, a suite of specialized services exist for retailFor now, the system works, even though the store
ers who want them. Retailers wanting a sales-ready manually manages data at the end of each day. But
website can tap into packages offered by Shopify, Ma- such a system limits growth opportunities.
gento, 3Dcart, OrderDynamics and others. Shipping
“If online picks up, I have to figure out how I’m going
software? No problem. Order Cup, Ship Station, Pro- to manage [data between systems],” Aburaneh says. He
cess Weaver, Virtual Logistics, and others have easy- might commit all services to one vendor, even though
| 27
compete
•5%Decreasedlessthan10%
•2%Decreasedmorethan10%
•27%Remainedflat
•12%Increasedlessthan10%
•24%Increasedmorethan
10%butlessthan25%
•31%Increasedmore
than25%
the growth of online
canadian online sales continue to grow. According to the first annual RCC
E-commerce Benchmark Survey, conducted in partnership with Forrester research,
the trend across the industry shows a steady increase in gross online sales in 2014
over 2013 numbers.
Source: 2015 RCC E-commerce Benchmark Survey
he has yet to find a vendor that’s
demonstrated mastery in online
and physical store technology.
Aburaneh isn’t alone in finding
a pot of gold at the end of the estore rainbow. Butler cites The
Camera Store in Calgary as a
prime example of what retailers
can do with the right technology.
The store has one physical location and a web store. After optimizing their back-end, the store
saw sales explode—to the point
where online sales outpaced instore sales several times over.
Bouclair, a chain of furniture
and home décor stores, rethought
its logistics. Rather than shipping
goods sold online individually
across the country, the store’s integrated system now parcels online
orders in a more logical fashion
and ships to stores located closer
to the customer.
get out of the echo chamber
Study after study demonstrates
the huge opportunity waiting for
retailers online. And with so many
vendors offering ready-to-go web
store services, the reasons for staying offline seem less and less persuasive. But for many, doing online
right is the challenge. Smith says
part of the solution is clarifying the
store’s role in the market.
“If your business is predicated
on buying product, marking it up
and selling in a store, what’s the
difference today with the store
next door? Until you define that,
technology is irrelevant,” he says.
He also says staying offline isn’t
an option for retailers hoping for a
long career.
“There has been in the Canadian
retail industry an echo chamber
of dated ideas. One of these is
the idea that ‘I don’t need to do ecommerce’. Because of that, people
have not been willing to be openminded about online selling.”
And over the long run, if trends
continue, staying offline will cost
retailers the business.
eFIND FULFILLMENT
764247_Metro.indd 1
28 |
28/08/15 3:40 am
We are cutting the cord
halometrics.com
On August 20th, 2015 Halo Metrics will be
introducing new wireless technology to
help retailers prevent theft and improve
the shopping experience.
Imagine a shopper interacting with a display
of live smart devices that are fully secured but
the products are not tethered?
Visit our website to learn more.
You can also see a live demonstration of this
technology in our booth during the RCC Loss
Prevention Conference on September 16th, 2015.
Retail security solutions
that protect the shopping experience
Western Canada: 1.800.667.9199 Eastern Canada: 1.800.667.3390
GROWTH DRIVERS
THE ONLINE
MARKETPLACE
BOOM
RCC's E-commerce Benchmark Survey finds that online
retailing has taken yet another stride, and that online
marketplaces present a great opportunity
for retailers in Canada.
BY TALBOT BOGGS
S A LE
30 |
CHLOE Raincock began Heel Boy 17 years ago
marketplaces come in varying shapes and sizes—big giants like eBay and Amazon, smaller
nationally-focused sites like Shop.ca and boutique markets which are focused on product
and/or service categories. In all cases marketplaces offer customers assortment. And they offer retailers an abundance of selling, marketing,
and engagement opportunities.
“They are like internet landlords,” says
Poologasingham. “They provide location, infrastructure and services to enable and encourage
retailer/customer transactions.”
EBay, one of the more dominant players in
the e-marketplace space, boasts a platform
that consists of more than 800 million items
and brings different benefits to retailers of different sizes. It offers entrepreneurs and small
retailers the opportunity to tap into a huge
marketplace with minimal risk and low cost.
eBay provides the technology platform, SEO/
SEM marketing, search results and
purchase carts, allowing Canadians
to sell. Canadians sell more than 1
million items per month on eBay.
That's 33,000 items per day, equat— ANDREA STAIRS, eBay Canada
ing to $1 billion dollars spent annu RCC's E-commerce Benchmark Survey, con- ally on the site by Canadian consumers.
ducted in partnership with Forrester Research, “We leave the retailer free to focus on price
points to the rise of Canadian e-commerce, and the and inventory and we do the rest,” says eBay
opportunities that online marketplaces present to Canada managing director Andrea Stairs.
retailers. And thousands like Heel Boy are using
them to market and sell their products and services Greater penetration
to consumers, retailers and manufacturers around Mid-size retailers often use eBay as a channel
the world. For some, marketplaces may be an ad- to complement their existing bricks-and-mortar
junct to their existing e-commerce and bricks-and- and online stores, drive excess traffic, immedimortar business, but for many small and medium- ately increase the reach and exposure of their
sized retailers it’s the best way to vastly expand brands and hopefully enable them to negotiate
their reach.
better deals with their suppliers.
“They have similar attributes of physical market- eBay offers large retailers and brands like
places in that they bring together an assortment of Dyson, Lowes and Toys“R”Us the opportunity
sellers into one location but with the added embel- to get greater reach for their products and to sell
lishments offered by modern technology such as inventory that they may not want to put on their
customer reviews, guarantees, loyalty programs, own channels such as open box returns, last
search engine marketing, customer analytics and, season, used or refurbished merchandise.
of course, enormous brand and product exposure,” “There’s a great general mix of inventory for
says Suthamie Poologasingham, director U.S. sale from new-in-season to goods being sold by
marketing and research omni-channel commerce individual sellers—a ‘spectrum of value’ from a
and digital media with J.C. Williams Group.
new iPhone 5 to a refurbished iPhone 4 and a
used iPhone 3,” says Stairs. “In all cases retailTaking many forms
ers and sellers of all sizes can immediately start
Like the retailers they represent, internet to expand their business with little incremental
in Kingston, as a local boutique store selling affordable designer shoes and boots. She slowly
built a strong, loyal customer base, expanded to
two other stores in Toronto and one in Kitchener
and created a small internet presence with a website. Over time, however, she began to realize she
needed a much more aggressive online presence
to keep her business up to date and move it to the
next level.
“To be honest I knew that I had to improve my
online presence to stay relevant, but for us that
was a very daunting task that just wasn’t in my
heart to do,” says Raincock. “One day a friend told
me about Canadian internet marketplace Shop.
ca and I signed up with them. Since then I have
expanded into socks, underwear, handbags, knapsacks and accessories and attracted a number of
new brands. It has really helped to revitalize my
entire business.”
“We leave the retailer to focus on price
and inventory and we do the rest.”
FALL 2015 | CANADIAN RETAILER
| 31
GROWTH DRIVERS
costs. These are the things that make us special.”
Quick and steady growth
same-day or next-day shipping. Even
big box retailers use Amazon just so
they won’t lose any of their marketshare.
This is why Amazon is so advanced in
this sector— it provides so many benefits for retailers.”
In just three years Shop.ca has carved out a very successful niche by offering a suite of specialized services
and benefits. The firm is adding about 100,000 new
members a year and the average order
value is increasing by about 10 per cent “Our focus on premium brands really resona year to about $200.
ates well with our customers. And our pricing
“Our growth is attributable to our structure and services and benefits are very
focus on providing solutions for Canadian retailers and customers, competi- empowering to our merchant partners.”
— JAMIE HAGGARTY, Shop.ca
tive pricing and offering exceptional
benefits,” says CEO Jamie Haggarty.
Shop.ca has no monthly or annual fee and is paid Dawning of a new e-era
a percentage of completed sales ranging from 5 to 25 There are smaller boutique marketper cent or higher. It focuses primarily on offering pre- places that specialize in product and/
mium brands across 27 categories with an emphasis on or service categories such as handmade
baby, home and fashion. It provides a range of market- crafts, temporary housing and finding
ing services including data analytics, browser behav- people to do odd jobs around the home.
ior, cart information, search engine marketing, email, Most internet marketplace landlords are
video and flyer production and distribution. In 2014, it independent, non-retail companies, alimplemented a loyalty program with Aeroplan which though some large retailers such as Best
now accounts for about 50 per cent of the company’s Buy and Walmart are reportedly working
orders. And it also offers free shipping and returns to on creating their own online sites. But
its customers.
marketplaces provide the greatest value
Shop.ca’s typical customers are young families aged to small and mid-size retailers by giving
34-49 with an average household income of $100,000 them the platform to leverage access to
and home value of $500,000 who are time-stretched and audiences they could never reach.
want convenience and value. Its 500-plus merchant part- “To do this business well you’ve got to
ners do their own creative work and set the price of their be known for something, whether it’s a catgoods while the company provides the platform, technol- egory or service,” says Haggarty. “You’ve
ogy and marketing to help them drive sales, including got to earn the trust of your customers
a two million dollar television advertising/promotion and retail partners, know your marketing
campaign this year.
metrics and do your marketing efficiently
“Our focus on premium brands really resonates well because you can spend a lot of money for
with our customers. And our pricing structure and not much value, and you have to have the
services and benefits are very empowering to our mer- right brands at the right time for the right
chant partners,” says Haggarty.
people. E-commerce may look easy, but it
Another internet marketplace that has its advantages isn’t. It’s hard work.”
for merchants is, of course, Amazon. It’s easy to join and
provides access to a huge international audience of consumers, retailers and manufacturers. And it’s this huge
audience that speaks volumes for Amazon, illustrating
just how lucrative a space the e-marketplace arena is
and the potential for retailers everywhere to market to,
reach and connect with customers all over the world.
“Amazon is really easy to join and is international in
nature,” says Poologasingham. “Amazon will warehouse products of its prime members and provide free
32 |
member profile
ThriVinG in ThE onlinE world
Family-owned business leveraging online capabilities
to grow sales and extend the brand.
BY SEAN C. TARRY
nova scotia-based retailer, Wicker Empor“…what we and other retailers have seen over recent
ium, is family-run. The company was founded years is the incredible potential that the leveraging of
in 1972 by its current president and CEO Mae-commerce represents. If done properly, it can help you
dan Kapahi. A lawyer by training, he immigrated to Canada from India planning to practice create a more efficient model, allowing you to offer better
law in Vancouver. He found out quickly, how- value and greater convenience to the end consumer.”
ever, that he would be subject to taking a pleth— rAJ KApAhi, Wicker Emporium
ora of equivalency courses and bar examinations to qualify as a professional in this country. He decided to growing online
change direction, found himself in Halifax where he entered into
Fast-forward more than 40 years later and the
educational studies and met his wife. It’s when the couple began company continues to succeed in the competifurnishing their first home that Kapahi realized that there was a tive home furnishings market with 24 locations.
potential hole in the home furnishings market. He and his wife Today, the company has shifted away from sellwere looking for wicker furniture, and there wasn’t any.
ing wicker furniture and is now mostly focused
“He saw the opportunity to bring wicker pieces into the local on selling solid hardwood imported furniture
market here,” says his son Raj, the company’s COO. “Initially he and a large variety of home accessories. In
bought domestically from wholesale importers. He quickly real- addition to the right product assortment and
ized that to earn the right margins he needed to buy direct from excellent customer service—two elements that
manufacturers in Asia.”
helped the company grow on early successes—
Kapahi opened his first location in Halifax’s Scotia Square in Wicker Emporium is growing thanks to the po1972. He opened his next store a year later in Micmac Mall. To tential of online and e-commerce.
get the volume of orders up to justify going direct to the manu“The business is all about trends and the tastes
facturer, he quickly opened additional stores in Fredericton, that fit the lifestyle of our consumer,” admits Raj.
Moncton and St. John’s. The company became a success and a “However, what we and other retailers have seen
mainstay in the Atlantic market.
over recent years is the incredible potential that
| 33
member profile
(l-r) Raj Kapahi, Priyanka Kapahi, Madan Kapahi, Aliya Kazhahulava,
Justin MacDonald and Sean MacInnes.
able to see what’s incoming on a boat from Asia,
when it’s scheduled to arrive at port and order
that piece for the customer.
“There’s a lot of personal service that goes into
our store and model,” says Raj. “Online helps us
enhance our offering ten-fold.”
In fact, online has come to represent such a
boon for the business that its recent foray into Ontario highlights just how powerful the medium is.
“We moved into Ontario in 2011, opening five
stores—three in the GTA and two in Ottawa,”
he explains. “It’s been a bit of a slow start for us
with respect to our brick and mortar locations.
But, the province has quickly become our number one market for online sales.”
the leveraging of e-commerce represents. If done properly, it can
help you create a more efficient model, allowing you to offer better value and greater convenience to the end consumer.”
One way Wicker Emporium does this is by combining the potential of online and e-commerce with the power of in-store staff.
“We don’t stock all of our items available at every location,” explains Raj. “Because of this, it’s extremely important for our sales
staff to speak to our customers to find out what
their needs are and match them with appropri- “Online is awesome because you don’t need to make too
ate product. We have such a variety of furniture many investments with respect to fixed costs, or upfront
and collections. And we don’t try to jam every investment for that matter. Once you have the platform, you
piece into our stores. We’re trying to create a
can go and market in Alberta or British Columbia and try to
dense but shoppable atmosphere. We’re able to
do this by using our website as a tool in store. create some brand awareness through your online presence.”
Our associates are able to show customers what
— rAJ KApAhi, Wicker Emporium
they’re looking for, in addition to other details
about the furniture and other things that will complement that a new way of doing things
piece. The combination of online and in-store service is vital for
The company is concentrating on branding
us to service the customer effectively.”
and marketing itself to grow in Ontario. But, as
Raj points out, there are some lessons that they
online options
can apply to the business down the road.
In addition to taking the customer online in-store to research
“Our online performance has been so strong
product, the company also gives its employees the ability to order that it really opened my eyes to its full potential,”
off of containers that are en route to Canadian shores. Even if the he says. “The platform offers us the biggest opcustomer is looking for an item that isn’t in the location they’re portunity because there’s very little risk involved.
visiting, or in another store or the company’s warehouse, staff are When you enter a new market you can be relative34 |
The online channel helping sales in-store.
ly unknown. You invest hundreds of thousands of dollars opening new
locations and marketing to a new audience. You end up with all of these
fixed costs that you have to somehow manage to pay with your sales. Online is awesome because you don’t need to make too many investments
with respect to fixed costs, or upfront investment for that matter. Once you
have the platform, you can go and market in Alberta or British Columbia
and try to create some brand awareness through your online presence.”
And, yes—the company does receive orders from those provinces,
and others. In fact, as Raj points out, out-of-province orders for the
company’s products continue to grow exponentially.
To link to its efforts online, the company is also extensively engaged in
social media—36,000 Facebook fans—does TV branding, distributes an
e-newsletter and has also partnered in some affiliate marketing. But, as
Raj rightly says, “Online is where it’s at.” And to that end, the company is
currently focusing resources on search engine optimization of its website,
Improving its ranking on Google Local Business, working with Google
Adwords and Google remarketing, and are also opening an Ebay store
and listing its products on Shop.ca. It also has plans to make its products
available in other digital marketplaces before the end of this year.
“We’re working on continuing to develop our omni-channel model
of selling all the time. That means merging the online and brick-andmortar sales channels. It means refining the in-store shopping experience by allowing customers to access and shop the web site catalogue
at all times. It means offering customers the option of in-store pickup
or home delivery. It simply means providing for the customer a more
convenient, enjoyable and satisfying experience.”
New employment standards requirements
under the Accessibility for Ontarians with
Disabilities Act (AODA) will impact your retail
operations in Ontario soon!
Deadline for retail begins January 1, 2016
RCC is here to help. Register for our exclusive
EnAbling Retail Webinar series.
Register today! RetailCouncil.org/webinars
WEBINAR 2
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September 17
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Creating an
Recruitment
The Accommodation
Inclusive
and Selection
Process
Workplace for
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NOW AVAILABLE ON OUR WEBSITE
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WEBINAR 4
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November 17
The Return to
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Career
Development
RetailCouncil.org/AODA
| 35
talent development
tHe plaCe of poSSible
h&M succeeds at recruitment, retention and
reputation to sustain corporate Growth
BY ANDREW HIND
the ability to Phamrecruit and retain top retail talent can be the
foundation of any successful business. However, ask any retailer
and they'll tell you that the task is a lot easier stated than accomplished. It's an ongoing challenge within the industry, one that is
viewed by many retailers as one of their top concerns and initiatives today. And going forward many companies are launching
campaigns to help support and achieve their recruitment and
retention goals.
One such company is H&M, Hennes & Mauritz Inc., one of the
world's largest fashion retailers, famous for offering fashion-forward apparel at affordable prices in a sustainable way. The company has identified recruitment and retention as one of its priorities, and they seem to managing the challenge better than most,
attracting the best talent and ensuring solid retention rates to
meet their growth strategy targets.
They've accomplished this through the development of a campaign that has helped the company hire smarter by recruiting
prospects interested in the H&M experience, and by attracting
those who are the right fit for the company.
chelsea
wharton
Controller
“You can have a unique style and be yourself here.
we don’t just allow that, we encourage it. we have
people of different sexual orientations, race, culture,
religion, age. h&M is about expressing yourself, whoever you are. anything is possible for anybody.”
identifying with candidates
Brand loyalty is a driving factor within the retail
industry. Customers have long shopped at stores that
speak to them on some intrinsic level, but no longer
is brand loyalty merely limited to the customer-retailer relationship. Today, people—especially those
in the 18-30 age group—are increasingly choosing
— JessicA GABrieL, H&M Canada
to work at businesses that they identify with. They
want to work at a place compatible with their lifestyle, their core
values, their career ambitions, and their beliefs.
In a recent WorkTrends survey, it was revealed that employees report that an organization’s reputation is crucial when they
Dustin
think about joining or remaining for any length of time. It was
rivadillo
Visual
also revealed that employees want to be engaged by their organMerchandiser
izations, personally and professionally.
H&M not only recognizes this reality but hopes to harness it in
a newly launched national recruiting campaign. Called “Place of
Possible,” the campaign is aimed at attracting talent interested
in entering the fashion industry to support the company’s continued expansion across Canada.
“The campaign, like our company, celebrates a diverse workforce,” explains Jessica Gabriel, employee relations specialist at
H&M. “You can have a unique style and be yourself here. We don’t
just allow that, we encourage it. We have people of different sexual
orientations, race, culture, religion, age. H&M is about expressing
yourself, whoever you are. Anything is possible for anybody.”
36 |
raising culture awareness
The campaign will include national advertising across online platforms, outdoor billboards, special sections within print
media such as the Toronto Star and Financial Post, and in-store
displays—all geared at spreading awareness of company’s competitive compensation, benefits and advancement opportunities
that make H&M a viable and attractive launching pad for careers
in fashion and business.
Gabriel points out that employee satisfaction and loyalty combined to make H&M among the Best Workplaces in Canada to
work in 2015.
The “Anything is Possible” advertising campaign spotlights a
number of H&M employees whose career trajectories at the company reflect the spirt of “Place of Possible.”
“I joined because of what the store had to offer me as a customer. Everything always seemed so fashionable and reasonably
priced with great atmosphere walking into the store. Because of
that, I became intrigued and wondered what it would be like to
be a part of this growing company,” Pham says. “H&M is a very
unique place. It has its own culture that you live by. There's never
a dull moment when you're always faced with challenges to make
you better than you were the day before. Hard work at H&M does
come with an upside of perks and benefits associated with a company that is more than welcoming. You will feel like you're at
home the moment you step into the store.”
Gabrielle
rivest
Store
Manager
hieu
pham
Department
Manager
continued growth
The company hopes that the campaign will be a success and
help bolster its already impressive recruitment and retention
rates. Last year H&M Canada promoted 223 people internally.
And it looks to continue its smart hiring process in order to carry
on its development in the country.
“We’re experiencing 10-15 per cent growth in number of stores
per year. The program is about recruiting the best and brightest to support our growth, and demonstrating the constant opportunities a dynamic company like H&M affords employees,”
explains Gabriel. “H&M strives to offer employees the best work
environments and highly-competitive compensation packages, while at the same time remaining “hard work at h&M does come with an upside of
focused on customer service, quality products and
perks and benefits associated with a company that
corporate responsibility.”
The corporate mantra seems to resonate with is more than welcoming. You will feel like you're at
employees (as evidenced by high retention rates) home the moment you step into the store.”
and with the public. The “Anything is Possible”
— hieU phAm, H&M Canada
advertising campaign was unveiled in the United
States earlier this year and H&M experienced a 1007 per cent
increase in applications in the months following. A similar response is expected in the wake of the Canadian campaign, which
launched September 3 this year.
A carefully nurtured and inclusive culture at H&M that encourages personal growth and individuality has not only benefited
retention of star employees in an increasingly competitive workforce, but is now being leveraged by the company for a unique advertising campaign designed to recruit top talent. It’s a winning
formula, and proves that H&M truly is a “Place of Possible”.
| 37
advertiser's index
advertiser
page
advertiser
page
BDo canada LLp ................................................. inside Front cover
www.bdo.ca
independent electricity system operator (ieso) ........ 25
www.powerauthority.on.ca
Bronto software ........................................................................................ 14 & 15
www.bronto.com
metro Logistics inc. .......................................................................................... 28
www.metroscg.com
call2recycle ............................................................................................................. 20
www.call2recycle.org
moneris solutions .................................................. inside Back cover
www.moneris.com/rcc
cross Border Global Logistics .............................................................. 13
www.crossborder3pl.com
reliance protectron inc. .................................................................................. 5
www.protectron.com
epiQ systems class Action & claim solutions ................ 19
www.epiqsystems.com
se-KUre controls inc. ................................................................................... 11
www.se-kure.com
halo metrics .............................................................................................................. 29
www.halometrics.com
tangentia .................................................................... outside Back cover
www.tangentia.com
38 |
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look no further than our online Retail Supplier Directory. This easy
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Search by company name, contact name, location or category
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RET-S0615 FP_FillerAd_MKG.indd 1
2015-10-01 1:49 PM
D
isplay advertising – Your message will be included in both the print and digital editions.
Exclusive! Heavy Stock Insert – Ensures your message stands out by being printed on heavy stock paper.
Let RCC Guide YOU!
THE RETAIL SUPPLIER DIRECTORY PUTS
EVERYTHING AT YOUR FINGERTIPS.
When you’re in need of a trusted vendor and supplier resource,
look no further than our online Retail Supplier Directory. This easy
to use forum is designed to make finding what you need faster and easier.
Search by company name, contact name, location or category
to find the best partners for your business.
Everything retail, with just the click of a mouse.
Visit rcc.officialbuyersguide.net to begin your search today!
For information on adverting with the Retail Supplier Guide, view our online media kit: naylornetwork.com/webkits/PDFs/ret-o.pdf
RET-S0615 FP_FillerAd_MKG.indd 1
2015-10-01 1:49 PM

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